In this file:
∑ Pilgrimís Pride Short on Workers Uses Robots to Meet Demand
∑ Pilgrim's Pride (PPC) Q1 Earnings Beat Estimates, Sales Rise Y/Y
∑ Pilgrims Pride Corp (PPC) Q1 2021 Earnings Call Transcript
Pilgrimís Pride Short on Workers Uses Robots to Meet Demand
Kim Chipman and Michael Hirtzer, Bloomberg
via Yahoo Finance - April 29, 2021
(Bloomberg) -- Pilgrimís Pride Corp. is seeing a welcome rebound in chicken demand as more restaurants reopen, but a shortage of workers is hurting profit potential and spurring the No. 2 U.S. poultry producer to turn more to robots.
The Colorado-based company, a unit of Brazilian meat giant JBS SA, said it expects to invest more than $100 million over the next year in automation. Such efforts already led to the reduction of 2,200 positions over the last year, and there could be further cuts of as many as 5,600, Chief Executive Officer Fabio Sandri told analysts on Thursday.
The squeeze hits as vaccination rates accelerate and restaurants across the U.S. see a surge in revenue with more people dining outside the home. The labor predicament underscores shortages noted by the Federal Reserve, which said in its Beige Book report earlier this month that hiring remained a widespread challenge, particularly for low-wage and hourly workers, putting downward pressure on job growth.
Labor is the biggest dilemma right now for Pilgrimís Pride and is also affecting the broader industry, said Sandri. The company is investing an additional $40 million this year to retain workers and attract new ones, he said.
Tighter Market ...
Earnings Insights ...
Pilgrim's Pride (PPC) Q1 Earnings Beat Estimates, Sales Rise Y/Y
Zacks Equity Research
via Yahoo Finance - April 29, 2021
Pilgrim's Pride Corporation PPC reported impressive first-quarter 2021 results, with the top and the bottom line increasing year over year. The upside can be attributed to product portfolio strategy, operational endeavors and Key Customer strategy that helped mitigate the impact of tough market conditions amid the pandemic.
Undeniably, healthy performance across all regions in which the company operates contributed to the results. Moreover, earnings surpassed the Zacks Consensus Estimate during the quarter.
We note that shares of this Zacks Rank #1 (Strong Buy) company have surged 27.4% in the past three months compared with the industryís growth of 4.2%.
Q1 in Detail
Pilgrim's Pride reported first-quarter adjusted earnings of 42 cents a share that increased significantly from 12 cents posted in the year-ago quarter. Moreover, the quarterly earnings surpassed the Zacks Consensus Estimate of 27 cents.
This producer, marketer and distributor of fresh, frozen as well as value-added chicken and pork products generated net sales of $3,273.4 that increased 6.5% from the year-ago quarterís levels. Notably, net sales increased...
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Pilgrims Pride Corp (PPC) Q1 2021 Earnings Call Transcript
PPC earnings call for the period ending March 31, 2021.
Motley Fool Transcribers
Apr 29, 2021
††† Prepared Remarks
††† Questions and Answers
††† Call Participants
Good morning, and welcome to the First Quarter 2021 Pilgrim's Pride Earnings Conference Call and Webcast. [Operator Instructions]. At the company's request, this call is being recorded. Please note that the slides referenced during today's call are available for download from the Investor Relations section of the company's website at www.pilgrims.com. [Operator Instructions].
I would now like to turn the conference to Dunham Winoto, Head of Investor Relations Corporate bills, right. Thank you, and over to you.
Dunham Winoto -- Head of Investor Relations
Good morning, and thank you for joining us today as we review our operating and financial results for the first quarter ended March 28, 2021. Yesterday afternoon, we issued a press release providing an overview of our financial performance for the quarter, including a reconciliation of any non-GAAP measures that we discuss. A copy of the release is available on the Investor Relations section on our website, along with the slides we'll reference during this call.
These items have also be filed as Form 8-K and available online at www.sec.gov. Presenting to you today are Fabio Sandri, our President and Chief Executive Officer; and Matt Galvanoni, Chief Financial Officer.
Before we begin our prepared remarks, I'd like to remind everyone of our safe harbor disclaimer. Today's call may contain certain forward-looking statements that represent our outlook and current expectations as of the date of this release. Other additional factors not anticipated by management and cause our actual results to differ material from those projected in these forward-looking statements.
Further information considering those factors has been provided in today's press release, on Form-8K and our regular filings with the SEC.
I would like to turn the call over to Fabio Sandri.
Fabio Sandri -- President and Global Chief Executive Officer
Thank you, Dan. Good morning, everyone, and thank you for joining us today. For the first quarter of 2021, we reported net revenues of $3.2 billion and adjusted EBITDA of $254 million or a 7.8% margin compared to 5.4% a year ago, and an [Technical Issues]. In addition, we offer $100 incentive bonus for every team member who chooses to be vaccinated. And we have halted operations in several locations during vaccinations to facilitate higher participation rates.
We have safety protocols above all standards, but coupled with higher definition rates at our facilities will continue to result in a safe working environment for our team members. We thank our governors and other state authorities who have supported vaccination of our workforce in many of the locations where we operate. In terms of direct COVID-19 mitigating costs, we include roughly $30 million for the quarter. Countering the significant challenge over the last 12 months, our portfolio strategy has continued to generate superior relative performance and outstate the competition by delivering more than 50% increase in adjusted EBITDA for Q1.
The results were driven by our resilient business model across all business units, included U.S., Mexico and Europe. The unique challenges as a result of COVID-19 presented an opportunity to demonstrate the value and strength of our well-diversified portfolio, including our presence in the world and our ability to generate more consistent results despite specific market volatility. Our performance is the result of our vision to become the best and most respected company, creating the opportunity for a better future for our team members.
To support our vision, we are continuing our strategy of...